Shanghai-based exchange BTC China has published a statement reassuring Chinese investors that its operations will resume as normal despite looming regulatory uncertainty.
The People’s Bank of China (PBOC) is widely expected to issue a public notice later this month, which would effectively put an end to bitcoin-related money transfers in China. The rumoured notice is expected to go official on 15th April.
However, since nothing is official yet, there is plenty of misinformation floating around. The spread of PBOC-related fear, uncertainty and doubt has been blamed for the latest price slump.
Until the rumoured PBOC statement is issued, it’s unclear what effect it will have on Chinese exchanges and bitcoin-related businesses.
BTC China remains confident
However, BTC China appears to be quite confident. The exchange points out that the so-called 15th April rumour and the uncertainty it spawned has already caused plenty of issues. In an open letter addressed to the Chinese bitcoin community, the exchange pointed out that it has not received any official notice from the PBOC:
“We’ve been tracking this issue. Whether it is local banks, Beijing’s central bank level, media channels and industry peers, we are paying close attention and keeping in contact. If we have any updates, we will immediately inform you.”
The exchange stressed that people are not afraid of the notice itself, but rather the “unknown” future.
Doom and gloom
BTC China then outlined the possible effects of the 15th April notice, dismissing many doomsday scenarios which have been proliferating in recent days. The exchange insists that the “core values” of bitcoin, notwithstanding the price, will remain intact regardless of what the PBOC chooses to do.
The exchange also argues that the notice will probably not have a long-term impact on the price, although it has already caused short-term price fluctuations.
BTC China also pointed out that many countries around the world are moving to supervise or regulate the bitcoin market. It cites recent regulatory moves in New York, Britain, Singapore and other financial hubs as proof that the world’s most developed economies are becoming actively involved in bitcoin.
The exchange argues that central banks and regulators are expected to tread cautiously. The impact of bitcoin on the wider economy is negligible for the time being, so rather than ban bitcoin and force it underground, regulators are more likely to recognise it as just another trend and regulate it to mitigate the risks.
This is actually a very good point and for the time being regulators appear to be doing just that. A P2P system would be next to impossible to dismantle, forcing it underground would simply make the risks much greater.
The great bitcoin bubble of China
BTC China admits that the domestic bitcoin market is indeed a bubble. The exchange explained its creation as follows:
“A general lack of domestic investment targets, coupled with the lack of understanding of bitcoin led to bitcoins becoming speculative grade. After the April 15 message, investors will re-evaluate bitcoin, an industry reshuffle may also occur.”
The exchange adds that it would welcome a reshuffle and that it sees the notice as “pre-dawn darkness.” It insists that China’s bitcoin community needs confidence to develop further. BTC China insists it is doing its part to restore confidence.
BTC China says it will upgrade its bitcoin trading platform, introduce regular third-party audits and publish their results, but more importantly it says it will expand its communication with regulators. The exchange is also planning to introduce new products which are currently in beta and it will also try to improve the overall user experience.
In essence, BTC China insists it is in it for the long haul.
April 04, 2014 at 12:08PMLatest Bitcoin News | BTC/LTC Robot | Mining ASICS | BTC Debit Card
